BILL NUMBER: SB 453	CHAPTERED  05/24/00

	CHAPTER   26
	FILED WITH SECRETARY OF STATE   MAY 24, 2000
	APPROVED BY GOVERNOR   MAY 23, 2000
	PASSED THE ASSEMBLY   MAY 11, 2000
	PASSED THE SENATE   JANUARY 20, 2000
	AMENDED IN SENATE   JANUARY 3, 2000

INTRODUCED BY   Senator O'Connell

                        FEBRUARY 17, 1999

   An act to amend Section 1351 of the Civil Code, and to amend
Sections 66412 and 66452.10 of the Government Code, relating to
housing, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 453, O'Connell.   Housing:  condominium conversions.
   Under existing law, the Subdivision Map Act authorizes the
conversion of a stock cooperative or a community apartment project to
a condominium if the required number of owners in the cooperative or
project, as specified in the bylaws, or other organizational
documents, have voted in favor of the conversion.  If the bylaws or
other organizational documents do not expressly specify the number of
notes required to approve the conversion, a majority vote of the
owners in the cooperative or project is required.  The act also
expressly exempts from these provisions the conversion of other stock
cooperatives and community apartment projects if specified
requirements are met.  The Davis-Stirling Common Interest Development
Act defines a condominium plan as a plan consisting of, among other
things, a certificate consenting to the recordation of the
condominium plan pursuant to the act, signed and acknowledged by the
record owner of fee title to that property included in the
condominium project.
   This bill would revise these provisions to require that the
conversion of all stock cooperatives and community apartment projects
comply with the approval requirements under the Subdivision Map Act
and would expand those requirements to include the votes of the
trustees or beneficiaries of each recorded deed of trust and
mortgagees of each recorded mortgage, as specified in the bylaws or
other organizational documents.  The bill would also revise the
requirements of a certificate for a condominium plan under the
Davis-Stirling Common Interest Development Act and would incorporate
the other changes to these provisions into the Subdivision Map Act.
   The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1351 of the Civil Code is amended to read:
   1351.  As used in this title, the following terms have the
following meanings:
   (a) "Association" means a nonprofit corporation or unincorporated
association created for the purpose of managing a common interest
development.
   (b) "Common area" means the entire common interest development
except the separate interests therein.  The estate in the common area
may be a fee, a life estate, an estate for years, or any combination
of the foregoing.  However, the common area for a planned
development specified in paragraph (2) of subdivision (k) may consist
of mutual or reciprocal easement rights appurtenant to the separate
interests.
   (c) "Common interest development" means any of the following:
   (1) A community apartment project.
   (2) A condominium project.
   (3) A planned development.
   (4) A stock cooperative.
   (d) "Community apartment project" means a development in which an
undivided interest in land is coupled with the right of exclusive
occupancy of any apartment located thereon.
   (e) "Condominium plan" means a plan consisting of (1) a
description or survey map of a condominium project, which shall refer
to or show monumentation on the ground, (2) a three-dimensional
description of a condominium project, one or more dimensions of which
may extend for an indefinite distance upwards or downwards, in
sufficient detail to identify the common areas and each separate
interest, and (3) a certificate consenting to the recordation of the
condominium plan pursuant to this title signed and acknowledged by
the following:
   (i) The record owner of fee title to that property included in the
condominium project.
   (ii) In the case of a condominium project which will terminate
upon the termination of an estate for years, the certificate shall be
signed and acknowledged by all lessors and lessees of the estate for
years.
   (iii) In the case of a condominium project subject to a life
estate, the certificate shall be signed and acknowledged by all life
tenants and remainder interests.
   (iv) The certificate shall also be signed and acknowledged by
either the trustee or the beneficiary of each recorded deed of trust,
and the mortgagee of each recorded mortgage encumbering the
property.
   Owners of mineral rights, easements, rights-of-way, and other
nonpossessory interests do not need to sign the condominium plan.
Further, in the event a conversion to condominiums of a community
apartment project or stock cooperative has been approved by the
required number of owners, trustees, beneficiaries, and mortgagees
pursuant to Section 66452.10 of the Government Code, the certificate
need only be signed by those owners, trustees, beneficiaries, and
mortgagees approving the conversion.
   A condominium plan may be amended or revoked by a subsequently
acknowledged recorded instrument executed by all the persons whose
signatures would be required pursuant to this subdivision.
   (f) A "condominium project" means a development consisting of
condominiums.  A condominium consists of an undivided interest in
common in a portion of real property coupled with a separate interest
in space called a unit, the boundaries of which are described on a
recorded final map, parcel map, or condominium plan in sufficient
detail to locate all boundaries thereof.  The area within these
boundaries may be filled with air, earth, or water, or any
combination thereof, and need not be physically attached to land
except by easements for access and, if necessary, support.  The
description of the unit may refer to (1) boundaries described in the
recorded final map, parcel map, or condominium plan, (2) physical
boundaries, either in existence, or to be constructed, such as walls,
floors, and ceilings of a structure or any portion thereof, (3) an
entire structure containing one or more units, or (4) any combination
thereof.  The portion or portions of the real property held in
undivided interest may be all of the real property, except for the
separate interests, or may include a particular three-dimensional
portion thereof, the boundaries of which are described on a recorded
final map, parcel map, or condominium plan.  The area within these
boundaries may be filled with air, earth, or water, or any
combination thereof, and need not be physically attached to land
except by easements for access and, if necessary, support.  An
individual condominium within a condominium project may include, in
addition, a separate interest in other portions of the real property.

   (g) "Declarant" means the person or group of persons designated in
the declaration as declarant, or if no declarant is designated, the
person or group of persons who sign the original declaration or who
succeed to special rights, preferences, or privileges designated in
the declaration as belonging to the signator of the original
declaration.
   (h) "Declaration" means the document, however denominated, which
contains the information required by Section 1353.
   (i) "Exclusive use common area" means a portion of the common
areas designated by the declaration for the exclusive use of one or
more, but fewer than all, of the owners of the separate interests and
which is or will be appurtenant to the separate interest or
interests.
   (1) Unless the declaration otherwise provides, any shutters,
awnings, window boxes, doorsteps, stoops, porches, balconies, patios,
exterior doors, door frames, and hardware incident thereto, screens
and windows or other fixtures designed to serve a single separate
interest, but located outside the boundaries of the separate
interest, are exclusive use common areas allocated exclusively to
that separate interest.
   (2) Notwithstanding the provisions of the declaration, internal
and external telephone wiring designed to serve a single separate
interest, but located outside the boundaries of the separate
interest, are exclusive use common areas allocated exclusively to
that separate interest.
   (j) "Governing documents" means the declaration and any other
documents, such as bylaws, operating rules of the association,
articles of incorporation, or articles of association, which govern
the operation of the common interest development or association.
   (k) "Planned development" means a development (other than a
community apartment project, a condominium project, or a stock
cooperative) having either or both of the following features:
   (1) The common area is owned either by an the association or in
common by the owners of the separate interests who possess
appurtenant rights to the beneficial use and enjoyment of the common
area.
   (2) A power exists in the association to enforce an obligation of
an owner of a separate interest with respect to the beneficial use
and enjoyment of the common area by means of an assessment which may
become a lien upon the separate interests in accordance with Section
1367.
   (l) "Separate interest" has the following meanings:
   (1) In a community apartment project, "separate interest" means
the exclusive right to occupy an apartment, as specified in
subdivision (d).
   (2) In a condominium project, "separate interest" means an
individual unit, as specified in subdivision (f).
   (3) In a planned development, "separate interest" means a
separately owned lot, parcel, area, or space.
   (4) In a stock cooperative, "separate interest" means the
exclusive right to occupy a portion of the real property, as
specified in subdivision (m).
   Unless the declaration or condominium plan, if any exists,
otherwise provides, if walls, floors, or ceilings are designated as
boundaries of a separate interest, the interior surfaces of the
perimeter walls, floors, ceilings, windows, doors, and outlets
located within the separate interest are part of the separate
interest and any other portions of the walls, floors, or ceilings are
part of the common areas.
   The estate in a separate interest may be a fee, a life estate, an
estate for years, or any combination of the foregoing.
   (m) "Stock cooperative" means a development in which a corporation
is formed or availed of primarily for the purpose of holding title
to, either in fee simple or for a term of years, improved real
property, and all or substantially all of the shareholders of the
corporation receive a right of exclusive occupancy in a portion of
the real property, title to which is held by the corporation.  The
owners' interest in the corporation, whether evidenced by a share of
stock, a certificate of membership, or otherwise, shall be deemed to
be an interest in a common interest development and a real estate
development for purposes of subdivision (f) of Section 25100 of the
Corporations Code.
   A "stock cooperative" includes a limited equity housing
cooperative which is a stock cooperative that meets the criteria of
Section 33007.5 of the Health and Safety Code.
  SEC. 2.  Section 66412 of the Government Code is amended to read:
   66412.  This division shall be inapplicable to:
   (a) The financing or leasing of apartments, offices, stores, or
similar space within apartment buildings, industrial buildings,
commercial buildings, mobilehome parks, or trailer parks.
   (b) Mineral, oil, or gas leases.
   (c) Land dedicated for cemetery purposes under the Health and
Safety Code.
   (d) A lot line adjustment between two or more existing adjacent
parcels, where the land taken from one parcel is added to an adjacent
parcel, and where a greater number of parcels than originally
existed is not thereby created, provided the lot line adjustment is
approved by the local agency, or advisory agency.  A local agency or
advisory agency shall limit its review and approval to a
determination of whether or not the parcels resulting from the lot
line adjustment will conform to local zoning and building ordinances.
  An advisory agency or local agency shall not impose conditions or
exactions on its approval of a lot line adjustment except to conform
to local zoning and building ordinances, to require the prepayment of
real property taxes prior to the approval of the lot line
adjustment, or to facilitate the relocation of existing utilities,
infrastructure, or easements.  No tentative map, parcel map, or final
map shall be required as a condition to the approval of a lot line
adjustment.  The lot line adjustment shall be reflected in a deed,
which shall be recorded.  No record of survey shall be required for a
lot line adjustment unless required by Section 8762 of the Business
and Professions Code.
   (e) Boundary line or exchange agreements to which the State Lands
Commission or a local agency holding a trust grant of tide and
submerged lands is a party.
   (f) Any separate assessment under Section 2188.7 of the Revenue
and Taxation Code.
   (g) Unless a parcel or final map was approved by the legislative
body of a local agency, the conversion of a community apartment
project, as defined in Section 11004 of the Business and Professions
Code, to a condominium, as defined in Section 783 of the Civil Code,
but only if all of the following requirements are met:
   (1) At least 75 percent of the units in the project were occupied
by record owners of the project on March 31, 1982.
   (2) A final or parcel map of the project was properly recorded, if
the property was subdivided, as defined in Section 66424, after
January 1, 1964, with all of the conditions of that map remaining in
effect after the conversion.
   (3) The local agency certifies that the above requirements were
satisfied if the local agency, by ordinance, provides for that
certification.
   (4) Subject to compliance with subdivision (e) of Section 1351 of
the Civil Code, all conveyances and other documents necessary to
effectuate the conversion shall be executed by the required number of
owners in the project as specified in the bylaws or other
organizational documents.  If the bylaws or other organizational
documents do not expressly specify the number of owners necessary to
execute the conveyances and other documents, a majority of owners in
the project shall be required to execute the conveyances or other
documents.  Conveyances and other documents executed under the
foregoing provisions shall be binding upon and affect the interests
of all parties in the project.
   (h) Unless a parcel or final map was approved by the legislative
body of a local agency, the conversion of a stock cooperative, as
defined in Section 11003.2 of the Business and Professions Code, to a
condominium, as defined in Section 783 of the Civil Code, but only
if all of the following requirements are met:
   (1) At least 51 percent of the units in the cooperative were
occupied by stockholders of the cooperative on January 1, 1981, or
individually owned by stockholders of the cooperative on January 1,
1981.  As used in this paragraph, a cooperative unit is "individually
owned" if and only if the stockholder of that unit owns or partially
owns an interest in no more than one unit in the cooperative.
   (2) No more than 25 percent of the shares of the cooperative were
owned by any one person, as defined in Section 17, including an
incorporator or director of the cooperative, on January 1, 1981.
   (3) A person renting a unit in a cooperative shall be entitled at
the time of conversion to all tenant rights in state or local law,
including, but not limited to, rights respecting first refusal,
notice, and displacement and relocation benefits.
   (4) The local agency certifies that the above requirements were
satisfied if the local agency, by ordinance, provides for that
certification.
   (5) Subject to compliance with subdivision (e) of Section 1351 of
the Civil Code, all conveyances and other documents necessary to
effectuate the conversion shall be executed by the required number of
owners in the cooperative as specified in the bylaws or other
organizational documents.  If the bylaws or other organizational
documents do not expressly specify the number of owners necessary to
execute the conveyances and other documents, a majority of owners in
the cooperative shall be required to execute the conveyances or other
documents.  Conveyances and other documents executed under the
foregoing provisions shall be binding upon and affect the interests
of all parties in the cooperative.
   (i) The leasing of, or the granting of an easement to, a parcel of
land, or any portion or portions thereof, in conjunction with the
financing, erection, and sale or lease of a windpowered electrical
generation device on the land, if the project is subject to
discretionary action by the advisory agency or legislative body.
   (j) The leasing or licensing of a portion of a parcel, or the
granting of an easement, use permit, or similar right on a portion of
a parcel, to a telephone corporation as defined in Section 234 of
the Public Utilities Code, exclusively for the placement and
operation of cellular radio transmission facilities, including, but
not limited to, antennae support structures, microwave dishes,
structures to house cellular communications transmission equipment,
power sources, and other equipment incidental to the transmission of
cellular communications, if the project is subject to discretionary
action by the advisory agency or legislative body.
   (k) Leases of agricultural land for agricultural purposes.  As
used in this subdivision, "agricultural purposes" means the
cultivation of food or fiber, or the grazing or pasturing of
livestock.
  SEC. 3.  Section 66452.10 of the Government Code is amended to
read:
   66452.10.  A stock cooperative, as defined in Section 11003.2 of
the Business and Professions Code, or a community apartment project,
as defined in Section 11004 of the Business and Professions Code,
shall not be converted to a condominium, as defined in Section 783 of
the Civil Code, unless the required number of (1) owners and (2)
trustees or beneficiaries of each recorded deed of trust and
mortgagees of each recorded mortgage in the cooperative or project,
as specified in the bylaws, or other organizational documents, have
voted in favor of the conversion.  If the bylaws or other
organizational documents do not expressly specify the number of votes
required to approve the conversion, a majority vote of the (1)
owners and (2) trustees or beneficiaries of each recorded deed of
trust and mortgagees of each recorded mortgage in the cooperative or
project shall be required.  Upon approval of the conversion as set
forth above and in compliance with subdivision (e) of Section 1351 of
the Civil Code, all conveyances and other documents necessary to
effectuate the conversion shall be executed by the required number of
owners in the cooperative or project as specified in the bylaws or
other organizational documents.  If the bylaws or other
organizational documents do not expressly specify the number of
owners necessary to execute the conveyances or other documents, a
majority of owners in the cooperative or project shall be required to
execute the conveyances and other documents.  Conveyances and other
documents executed under the foregoing provisions shall be binding
upon and affect the interests of all parties in the cooperative or
project.  The provisions of Section 66499.31 shall not apply to a
violation of this section.
  SEC. 4.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to provide relief to the affordable housing crisis, it is
necessary that this act take effect immediately as an urgency
statute.
